Allianz to Buy Polish Mall From Immofinanz for $532 Million

A group of investors led by Allianz
SE (ALV), Europe’s biggest insurer, agreed to buy a shopping mall in
the Polish city of Katowice from Immofinanz AG (IIA) for 412 million
euros ($532 million).

Allianz, based in Munich, is expected to complete the
purchase of the Silesia City Center in September, Vienna-based
Immofinanz said in a statement today. The mall has about 340
stores with combined space of 89,000 square meters (958,000
square feet), all of which is occupied, Immofinanz said.

The Austrian company plans to increase development and sell
properties more quickly in a strategy to increase profit.
Immofinanz expects to hold assets from three to 10 years before
selling them, Chief Executive Officer Eduard Zehetner said in
March last year.

“The Silesia sale underscores the start of recovery on the
investment market in eastern Europe,” Zehetner said in the
statement. “We are optimistic that we will be able to conclude
further sales in this region during the current financial
year.”

Immofinanz bought the mall in 2006 and sold it for more
than the property’s book value, the company said, without
elaborating. The deal is subject to approval by the Polish
competition authorities.